F5, Inc. stock research
FY2026 Q2
F5 (FFIV) Gross Margin — Quarter Ended Mar 31, 2026
Revenue and gross profit were lower than the immediately preceding quarter but higher than the same quarter one year earlier. Gross margin weakened slightly compared to the prior quarter but improved versus the year-ago quarter, as cost of revenue decreased sequentially while revenue declined by a smaller proportion.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q2
Revenue and gross profit were lower than the immediately preceding quarter but higher than the same quarter one year earlier. Gross margin weakened slightly compared to the prior quarter but improved versus the year-ago quarter, as cost of revenue decreased sequentially while revenue declined by a smaller proportion.
- The gross margin remained high and relatively stable across all periods, with the most recent quarter nearly matching the prior quarter's level. The slight weakening was driven by a decline in revenue that outpaced the decline in cost of revenue.
- Compared to the immediately preceding quarter, revenue decreased and gross profit decreased, while gross margin edged lower. Compared to the same quarter one year earlier, revenue and gross profit were both higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.4%
Gross profit
$660.8M
Revenue
$811.7M
Cost of revenue
$150.9M
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+0.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $780.4M | $631.7M | $148.6M | 81.0% |
| Sep 30, 2025 | $810.1M | $666.2M | $143.9M | 82.2% |
| Dec 31, 2025 | $822.5M | $670.7M | $151.8M | 81.5% |
| Mar 31, 2026 | $811.7M | $660.8M | $150.9M | 81.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-0.1 pts
Year-over-year change
Mar 31, 2025
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin remained high and relatively stable across all periods, with the most recent quarter nearly matching the prior quarter's level. The slight weakening was driven by a decline in revenue that outpaced the decline in cost of revenue.
Compared to the immediately preceding quarter, revenue decreased and gross profit decreased, while gross margin edged lower. Compared to the same quarter one year earlier, revenue and gross profit were both higher, and gross margin improved.
Monitor the trajectory of revenue relative to cost of revenue, as a sustained narrowing could pressure gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| F5, Inc. (FFIV) | 81.4% |